Tapio Receives First Acala Grant, Bringing Efficient Liquidity to Uniform Assets on Polkadot

Dan Reecer
Published in
4 min readSep 7, 2021


Tapio Protocol has been accepted as the inaugural Acala Ecosystem Grant recipient (see Grant proposal). Tapio is a synthetic asset protocol designed for optimizing liquidity fragmentation to increase asset usability in the Polkadot ecosystem.

Tapio is powered by the Stable Asset system, which enables extremely efficient trading and low risk, using uniform, closely pegged assets with the following capabilities:

  1. Stable Swap — a highly efficient exchange liquidity pool
  2. Stable Asset — a synthetic asset backed by a basket of assets with the same value peg (ie. various versions of BTC, ETH, DOT, stablecoins).

Our conversation with the Tapio team dates back to the beginning of this year as they just started exploring the Polkadot ecosystem. Their goal was to understand the core value proposition of various parachains as well as the technical requirements for deploying their solutions onto a parachain. Our team and the Tapio team shared the same vision and approach to building a DeFi focused network, so we decided to start building together.

Acala is a multi-chain hub for liquidity and DeFi on Polkadot. The layer-1 platform is both EVM and Substrate-compatible, giving developers like Tapio the ability to build applications using Polkadot-native tools like Substrate and Polkadot.js, or Ethereum tools like Solidity, Truffle, and Metamask (using Acala’s EVM+). Acala offers built-in DeFi primitives, including the decentralized stable coin, aUSD, the Acala DEX, and Liquid DOT (LDOT) staking. Additionally, since Acala is built with Substrate, the chain can continue to be upgraded without forks, adding new functionality over time as developers discover new ideas for customization tailored to their DApp.

After 3 quarters of collaborating and diving into Substrate, Tapio has successfully deployed their uniform asset synthetic asset system to Acala’s Mandala testnet. Furthermore, upon Acala’s launch on Polkadot, the Stable Swap module will be integrated to the Acala DEX to serve as an alternative exchange liquidity pool.

Idle liquidity stored in the Stable Asset basket can enable highly efficient swap transactions between assets with the same value peg. For example, Tapio can be used to create synthetic assets for interBTC/renBTC, DOT/LDOT/LCDOT, or aUSD/USDT. This is significantly different than previous protocols like Curve who only provide an LP token for these uniform asset baskets, rather than a usable, liquid synthetic asset. In addition, Tapio will deploy this protocol on Acala’s Kusama-based DeFi platform, Karura, under the brand of Taiga.

Congratulations to the Tapio team for their rapid Substrate development efforts to bring a unique and valuable product to market and earning the first Acala Grant. We look forward to a long future of building and growing the Acala ecosystem together.

For updates on the launch of Tapio on Karura and Acala, follow the Karura twitter and the Acala twitter.

Acala Grants

The Acala Foundation Grants Program focuses on software development and research in the field of decentralized finance protocols that benefit the Acala and Karura ecosystem. The maximum amount of funding per application is limited to US$50,000. Larger funding requests will require more evaluation and due diligence, and hence the longer decision time.

Announcements about receiving an Acala Grant can only be made once the 1st milestone is accepted. Teams shouldn’t seek to cover 100% of their funding via the Acala Grants Program.

💰 Learn more about Acala Grants’ mission, guidelines, committee, and application process.

About NUTS Finance

Organized in 2018, NUTS Finance is a blockchain development DAO focused on building secure, composable and open source technology to enable financial applications on the blockchain.

Our core team is composed of engineers, financiers, security experts and serial entrepreneurs. Our approach is open, global and blockchain agnostic.

Through multiple projects, our aim is to deliver the working elements that can help shape the emerging crypto economy.

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About Acala

Acala is the EVM-compatible multi-chain DeFi hub of Polkadot. The platform also offers suite of cross-chain financial applications that let users trade, issue self-serviced loans, become liquidity providers, access staking derivatives, and earn high-interest APY on their digital assets. The network is scalable, Ethereum-compatible, and optimized for DeFi.

Acala was founded in Oct 2019, and today has received five Web3 Foundation grants, has backing from Coinbase Ventures, Pantera Capital, Polychain Capital, Arrington XRP, ParaFi, CoinFund, and other top firms, and has a distributed team in New Zealand, China, Europe, South America, and the United States.

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